Temasek to set up asset management group Seviora with S$75b AUM

TEMASEK Holdings will establish Seviora Holdings, a Singapore-based asset management group that will offer a broad range of multi-asset and multi-strategy investment expertise.

It will be the operational holding company for four existing asset management companies now wholly-owned by or affiliated to Temasek. They are Azalea Investment Management, Fullerton Fund Management Company, InnoVen Capital and Seatown Holdings International.

The combined assets under management (AUM) of the group will be about S$75 billion, the state investment firm announced on Tuesday.

Azalea focuses on private equity and its products are Astrea and Altrium; Fullerton's expertise includes equities, fixed income, alternatives and treasury management; Innoven provides debt capital to high-growth innovative companies backed by venture capital firms, and Seatown has a core strategy of value investing across the capital structure in companies globally.

Under the new structure, Seviora will work with the component entities on areas such product development, marketing and distribution. Temasek said there will be an "emphasis on collaboration and leveraging synergies".

A dedicated management team at Seviora will oversee the group's strategy and growth of its AUM, and drive capital allocation to meet business requirements and growth opportunities.

Meanwhile, the individual asset management companies under Seviora will retain their operational autonomy and continue to manage their investment strategies and organisational decisions, guided by their respective boards and management. They will also remain as distinct entities and retain their existing branding, Temasek said.

The group will provide access to a range of investment strategies across return profiles, asset classes and geographies.

Seviora's chairman will be Goh Yew Lin, a Temasek director and managing director of mainboard-listed investment company GK Goh Holding.

Jimmy Phoon, now the chief executive officer (CEO) of Seatown, will be the CEO-designate of Seviora. He will hold both positions concurrently until a successor is appointed for the Seatown role.

Mr Goh on Tuesday noted that the asset management industry is in a period of rapid change driven by shifting investor preferences, evolving asset classes and large concentrated pools of capital.

"By bringing four successful but distinctly different asset management companies together, we see the opportunity to accelerate business growth through creation of scale, synergistic product offerings and greater investment in technology," he said.

Meanwhile, Mr Phoon said that the new structure will enable the group to maintain and build on the brands and investment track records of each asset management company, and to offer existing and prospective clients a more integrated suite of products tailored to their needs.

Temasek's chief investment strategist Rohit Sipahimalani said Azalea, Fullerton, InnoVen and Seatown are specialists in their product and strategy segments, and that bringing the four together will allow the combined group to strengthen and leverage skill sets and capabilities, and to build a larger platform for future growth in the asset management space.

"In addition, the ability to allocate capital across strategies will enable Seviora to fund or seed new initiatives to better serve the evolving needs of investors."

The transaction is subject to regulatory and other approvals, expected by the end of this year.